European markets rose the most in six weeks today after the US government guaranteed $306 billion of troubled Citigroup assets.
The Dublin market rose over 6 per cent with the main financials all substantially up on Friday’s close.
Britain’s FTSE 100 rose 9.8 per cent, its biggest one-day rise in nearly 10 years.
Germany's DAX was up 11 per cent by the close of trading while France's CAC 40 increased by 9.4 per cent.
The US government has agreed to a $306 billion (€242 billion) rescue plan for Citigroup, agreeing to shoulder some losses from toxic debt in the latest attempt to bolster a financial services industry in turmoil.
The move comes after the banking giant saw its shares plunged by more than 60 per cent last week.
European giants Deutsche Bank AG and Credit Suisse Group AG gained at least 16 per cent as the guarantee for Citigroup, which has $2 trillion of assets and operations in more than 100 countries, eased concern a flight of depositors might further erode confidence in the financial system.
BP and BHP Billiton jumped more than 11 per cent as oil and metals surged. Europe's Dow Jones Stoxx 600 Index added 8.2 percent to 197.15 this afternoon. “Citigroup is just too big to fail,'' said Roger Kunz, head of investment strategy at Clariden Leu AG in Zurich.
The Dow Jones industrial average climbed 396.97 points, or 4.93 per cent, to end unofficially at 8,443.39, based on the latest data.
The Standard & Poor's 500 Index jumped 51.76 points, or 6.47 per cent, to finish unofficially at 851.79.
The Nasdaq Composite Index surged 87.67 points, or 6.33 per cent, to close unofficially at 1,472.02